Indian telcos’ revenue to reach $63 billion by 2026: Ericsson

The revenue of telecom operators in India is likely to reach $63 billion or over Rs 4 lakh crore from traditional services by 2026 due to growth in economy and population, a report from Swedish telecom gear maker Ericsson said.

Telecom operators also have potential to add another 20 per cent incremental revenue if they diversify their offerings for business segments by using 5G technology, it said. (Reuters)

The revenue of telecom operators in India is likely to reach $63 billion or over Rs 4 lakh crore from traditional services by 2026 due to growth in economy and population, a report from Swedish telecom gear maker Ericsson said. Telecom operators also have potential to add another 20 per cent incremental revenue if they diversify their offerings for business segments by using 5G technology, it said. “Operator revenues from traditional services (voice and data) are likely to grow from $37 billion (Rs 2.37 lakh crore) to $63 billion in India by 2026 due to population growth, increased penetration and high GDP growth,” the report said.

As per official data, the adjusted gross revenue (income from telecom services) of telecom operators was Rs 1,63,604.7 crore for the year ended December 31, 2016. The report projects that 5G enabled digitisation revenues in India will be $25.9 billion by 2026 and telecom operators can gain half of the total potential by expanding their offerings beyond traditional business.

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“The Indian operators can generate additional revenues of $13 billion or half off the stated potential if they take up roles beyond being connectivity and infrastructure providers to become service enablers and service creators. The largest opportunity will be seen in sectors like manufacturing, energy and utilities followed by public safety and health sectors,” the report said. According to technology experts, 5G technology waves will work in small area but will have very high speed and can be used for new concepts like driverless cars and in areas where fast response is required.

The report said that some areas where 5G technology can be implemented include industrial control and automation, autonomous driving, safety and traffic efficiency services, hospital applications and medical data management, among others. The Department of Telecom has sought views of the telecom regulator on 5G services but the standards for 5G technologies are expected to be finalised by mid-2018.